Uruguay, Embraer price global bonds

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The Republic of Uruguay and Brazilian aircraft manufacturer Embraer tapped the US bond market on Thursday, raising $1.95 billion combined for liability management, according to a source familiar with the deals. Uruguay sold $1.2 billion worth of 12-year bonds, while Embraer printed $650 million worth of 10-year notes in deals that were roughly 4.2 and 8.5 times oversubscribed respectively, the source said. The Uruguayan government priced the 2037 notes at par to yield 5.442%, or 100 basis points over US Treasuries. It opened the initial price talk earlier in the day at around 135 basis points and set guidance in the 105 basis point area before launching the deal, according to the source. BBVA, Citi and JPMorgan acting as joint bookrunners on the offering, which drew as much as $5 billion in orders, the source added. Earlier on Thursday, the sovereign announced an offer to repurchase a portion of the $1.38 billion outstanding on its 4.375% 2027 global bonds and the $2.07 billion outstanding on its 4.375% 2030 global notes. It put up $999 and $982.30 for every $1,000 in principal of the 2027 and 2030 notes respectively. Uruguay is the third Latin American sovereign to tap the international market this year, following multiple placements in US dollars and euros by Mexico and Chile last month. Uruguay previously raised ¥46.3 billion ($309 million at the time) in a four-part deal in the Japanese market last December. CORPORATE DEAL Meanwhile, São Paulo-based Embraer priced new 5.98% 2035 notes at 99.688 to yield 6.022%, or 158 basis points over USTs. It opened the initial price talk in the 190 basis points area and set guidance at around 160 basis points before launching the deal, the source said. Demand for the bonds peaked at $5.5 billion, the person added. Citi, Goldman Sachs, JPMorgan, Morgan Stanley and PNC Bank led the offering as global coordinators, working with Bank of America, Bradesco BBI, Crédit Agricole and Santander as joint bookrunners on the deal, according to the source. The company will use the funds for a tender offer underway on its 2027 and 2028 global bonds and the remainder for general corporate purposes, it said in a presentation to investors. Embraer last issued bonds internationally in July 2023 when it printed $750 million worth of seven-year bonds to fund a buyback.